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Uttar Pradesh State Budget 2020-21 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Uttar Pradesh FY 2020-21

Uttar Pradesh State Budget 2020-21 Budget at a Glance

Total Receipts

Rs 2.58 lakh crore

-8.5%

Total Expenditure

Rs 3.45 lakh crore

-0.3%

Fiscal Deficit

4.5%

Rs 78,000 crore

Capital Expenditure

Rs 45,000 crore

-6.3%

Tax Revenue

Rs 1.32 lakh crore

-12.0%

Interest Payments

Rs 42,000 crore

12% of expenditure

Uttar Pradesh Revenue Receipts 2020-21

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1.32 lakh crore (51.2%)
Non-Tax Revenue
Rs 1.26 lakh crore (48.8%)

Uttar Pradesh Expenditure Breakdown 2020-21

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 87.0%
Capital Expenditure 13.0%

Fiscal Deficit as % of GSDP — Uttar Pradesh 2020-21

The fiscal deficit for Uttar Pradesh in 2020-21 is 4.5% of GSDP (Rs 78,000 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Uttar Pradesh's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 42,000 crore consume 12.2% of total expenditure.

Uttar Pradesh State Budget 2020-21 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 3.1 lakh crore100%
1. Revenue ReceiptsRs 2.58 lakh crore83.2%
a. Own Tax RevenueRs 1.32 lakh crore42.6%
b. Non-Tax RevenueRs 1.26 lakh crore40.6%
B. Total ExpenditureRs 3.45 lakh crore100%
1. Revenue ExpenditureRs 3 lakh crore87.0%
2. Capital ExpenditureRs 45,000 crore13.0%
of which: Interest PaymentsRs 42,000 crore12.2%
C. Fiscal DeficitRs 78,000 crore4.5% of GSDP

Source: Uttar Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.

Uttar Pradesh Budget 2020-21 Analysis & Highlights

Key Highlights

  • COVID-19 severely impacted UP's migrant-dependent informal economy; 1 crore workers returned from other states.
  • Revenue collections declined only 5% due to agriculture's resilience and strong central support.
  • Fiscal deficit widened to 4.5% of GSDP under the expanded Atmanirbhar borrowing window.
  • Free food grain distribution to 15 crore people cost Rs 25,000 crore in emergency expenditure.
  • Capital expenditure contracted 18% to Rs 42,000 crore as pandemic response consumed resources.
  • MNREGA spending surged 150% to Rs 18,000 crore as returned migrants sought rural employment.
  • State health infrastructure exposed as critically inadequate during second COVID wave in April 2021.
  • Agricultural growth of 4% provided economic stability as industrial and service sectors contracted.
  • Total state debt crossed Rs 5 lakh crore for the first time, raising debt sustainability concerns.
  • Lucknow and Noida emerged as pandemic hotspots requiring Rs 3,000 crore in targeted health response.

Compare Uttar Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2016-172017-182018-192019-202020-21
Total Expenditure———Rs 3.46 lakh croreRs 3.45 lakh crore
Revenue Receipts———Rs 2.82 lakh croreRs 2.58 lakh crore
Capital Expenditure———Rs 48,000 croreRs 45,000 crore
Fiscal Deficit (% GSDP)———3.1%4.5%
Own Tax Revenue———Rs 1.5 lakh croreRs 1.32 lakh crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Uttar Pradesh State Budget 2020-21

The Uttar Pradesh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Uttar Pradesh Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Uttar Pradesh with other states

Side-by-side comparison of fiscal metrics across Indian states